Dear Home Owner:
Yes you will be liable for a few things, but not your mortgage and not your property taxes.
1. SB 931, which became effective January 1, bars banks from receiving deficiency judgments on mortgages on property of 1-4 units.
2. When the bank forecloses on your property, it will pay the taxes current. In fact, it probably already has paid the taxes current, check with the County Tax Collector.
3. Your HOA can come after you if your HOA dues are not paid current. Some associations are more lax in enforcing their rights than others. However, I always tell my clients to pay their HOA dues, even if they are not paying their mortgage and property taxes.
Just because your short sale was not approved previously, does not mean that it is not worth pursuing a short sale right up until the date of your trustee sale. Here is why. If your property goes to foreclosure, you are going to have a problem obtaining financing to buy any more property for a period of four years from the date of the foreclosure. If your property is sold in a short sale, then you will be able to obtain financing in two years. So a short sale is definitely worth pursuing, right up to the last minute. We have had good success with Wells in the past, so I do not think that Wells was the entire problem. When you go into a short sale, the buyers are a huge part of the equation. Your agent needs to communicate accurately to the buyers' agent any problems and the necessary steps to negotiate an approval with the lender.
I have an article on people who walked on their mortgages. Pretty interesting. I am happy to send it to you if you contact me by email.
Best of luck,
ERA Buy America Real Estate Services